UBS Upgrades American Axle (AXL) to Neutral

UBS analyst Joseph Spak upgraded American Axle (NYSE: AXL) from Sell to Neutral with a price target of $7.00.

The analyst comments "We are upgrading AXL to Neutral from Sell and retain our $7 PT. When we downgraded the stock to Sell, our 2024/25 adj. EBITDA forecasts was ~7% below consensus. Perhaps more importantly, at that time, we thought the market was pricing in 2025 adj. EBITDA ~10% above our 2025 forecast. Two things have changed: 1) Consensus 2024/25 adj. EBITDA forecasts are now a more reasonable ~3% above UBS. 2) At current levels, and using our 4.3x 2025E EV/EBITDA multiple, we believe the market is pricing in 2025 adj. EBITDA of ~$703mm, essentially inline with our ~$709mm forecast."

For an analyst ratings summary and ratings history on American Axle click here. For more ratings news on American Axle click here.

Shares of American Axle closed at $6.71 yesterday.

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